Uttar Pradesh Secures 1500 MW Energy Deal to Lower Power Costs

The Uttar Pradesh government has finalized a 25-year agreement to purchase 1500 megawatts of electricity from a thermal project, achieving a record-low rate of Rs 5.38 per unit. This move is projected to save the state approximately Rs 2958 crore, providing cheaper, stable electricity from 2030.

The Uttar Pradesh government, led by Chief Minister Yogi Adityanath, has reached a landmark agreement to procure 1500 megawatts of electricity from a thermal project. This 25-year deal, revealed at a cabinet meeting, is expected to significantly reduce power costs with a tariff of Rs 5.38 per unit.

The state will receive this more economical electricity starting in the financial year 2030-31, beating current rates of Rs 6.6 to Rs 9 per unit from existing projects. The initiative aims to meet energy demands and enhance self-reliance, as explained by Energy Minister AK Sharma.

The deal was secured through a competitive bidding process, with the selected private company topping proposals from several contenders. The agreement promises substantial savings for Uttar Pradesh and is modeled after a similar transaction executed in Maharashtra.

(With inputs from agencies.)